Duty Free Report 2020

the duty-free facility at the Grantley Adams International Airport has been in operation since 1959. the service facilitated the delivery of purchases to travelers on behalf of local duty-free retailers and the processing of volumes of third schedules (invoices) under the drawback scheme.

With the impact of the CoVId-19 pandemic, travel restrictions were imposed globally in 2020 resulting in significant declines in tourist arrivals to Barbados and significant declines in overall duty-free sales.

research by the World travel and tourism Council (WttC) Annual economic Impact report reveals that the global travel and tourism sector suffered an extreme loss of almost us$4.5 trillion in 2020. the Caribbean tourism organisation (Cto) noted that the Caribbean experienced a 65.5% fall in tourism arrivals in 2020. the decline in tourism arrivals was evident in Barbados, particularly during the periods of national lockdowns implemented by the Government of Barbados as well as the imposition of travel restrictions by countries globally. this decline was also translated into the hotel and duty-free sectors which remained closed for extended periods during and after the national lockdowns in 2020. As a result, the year saw significant decline in activities and the financial performance of the BCCI duty-free facility and the local duty-free sector in general. It is anticipated that this decline will continue into 2021 as predictions are that the recovery of the global tourism and travel industry will be modest.

review of Packages and Triplicates processed between 2016 - 2020 A review of the performance of the facility over the past five years shows that there was general decline with respect to packages and triplicates processed since 2016, prior to the CoVId-19 pandemic and travel restrictions in 2020.

the data shows that the case of triplicates there was a peak in 2018 but a downward trend commenced pre-CoVId.

reVIeW oF 2019 aNd 2020 PerFormaNCe

A review of the performance of the BCCI Duty Free Facility shows a decline in revenue during 2020 when compared to 2019 and a decline in the number of packages and triplicates handled by the facility in 2020 when compared to the previous year. This was due to the effect of the closure of our borders in order to reduce the spread of COVID-19 which had a significant effect on the operations at the Facility. The number of packages processed in 2020 declined by 75 % when compared to the previous year. Triplicates processed declined by 86% over the same period. Revenue recorded in 2020 was $43,474 compared to $236,914 in 2019, a decline of $193,440 or approximately 82 per cent.

following the assessment of the performance and future viability of the facility, the decision was taken by the Chamber to close the operations. this decision was also driven by the impending liberalization of the duty-free sector by the Government and the establishment of new protocols for duty-free sales in Barbados, which will effectively eliminate the processing of triplicate invoices; one of two functions carried out by the facility on behalf of the Customs & excise department (Ced).

meetings were held with the Ced during 2020 to discuss the timeline for the implementation of the new duty-free sales policy by the Government, its impact on the facility and considerations by the BCCI to close the facility. the meetings also discussed the hand-over of documentation processes to the Ced ahead of the planned closure of the facility in march 2021.

the BCCI records appreciation to the four members of staff of the facility - Virgina Gilkes, rashida Gibson, sharon Bushell moore and sharon shorey - for their years of dedicated service and contribution over the years.